How To Choose An ERP For MSME?

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We are very well aware that ERP is commonly known as Enterprise Resource Planning.

ERP manages our business accurately and eases out our day to day operations & automates most of the recurring tasks.

Lets understand from MSME’s perspective as we are addressing this query for MSME only.

While choosing an ERP, client never specifies or document the complete requirements which takes place at his premises. He has some idea, on which are the prime and critical activities an ERP must address quickly as soon as its implemented.

We all should admit, we make decisions in haste, but selecting an ERP vendor has to be a well-thought move. I will tell you WHY?

We are well aware of the fact that most of the time ERP fails to make a mark in well organized corporate companies too. Following a system and process for human beings is not an easy task.

Even I faced issues when i worked for ICICI group and used the custom ERP developed by Infosys.

MSME owners can’t afford to introduce too complex systems because they don’t have a tech-savvy group of employees working on their premises. There are certain things which come as an obstacle when introducing ERP in MSME listed below

  1. The complex system makes employee de-motivated
  2. The employee often initially complaints about complexity
  3. ERP handling needs rigorous and continuous training in the premises
  4. Sometimes had to hire an ERP manager
  5. Not every employee can operate ERP productively

Sometimes our needs aren’t those bigs but just to become technologically ahead, we take up an ERP. Also, changing an ERP system is like incremental cost as you have to

So whats the solution? Not to use one?

After working with different ERP vendors in the MSME segment, we found out some types of ERP vendors who more or less falls in the below category:

  1. Desktop-based (Installed on a computer system)
  2. SAAS based monthly subscription (recurring charges)
  3. Open source ERP’s (Can be developed by a vendor)
  4. Customizable ERPs

*Not taking SAP into consideration due to his very high cost and AMC

We don’t suggest not to use, but use an ERP which would come extremely handy like working in a excel/spreadsheet/google sheets and is cost effective too.

We have implemented such spreadsheet based system in many client places where ERP was not the actual need. Our connectors made the normal excel/google sheets a very interactive dashboards, can see in pic below

Such advanced artificial intelligence based visualization isn’t possible with entry level ERP’s and such thing could cost more than 10+ lacs/annum.

But there is a catch & a working solution, if we can arrange a vendor who is ready to provide us captured input data by employees of the MSME firm, we can have above visualization which is highly customized.

Today, one can find browser based ERP vendors, in a very cost effective manner, may be 1-2 lacs/annum .

So, MSME can enjoy in a very cost effective manner, visualizations of a costly ERP in their premises.

Benefits of such ERP system

  • Very much cost-effective and a proven approach.
  • Employees are much comfortable.

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